Credit union business lending is getting media attention in the Springfield region. Recently, both KOLR-TV and the Springfield Business Journal highlighted the difficulties local businesses faced in getting loans from banks, and how credit unions were able to step in to help.
The KOLR-TV article focused on Shawn Motlagh, the owner of Rosati’s Pizza, and Justin Hurst, who runs his family’s Kiddie Kart ice cream truck business.
"First I tried some of the banks, and was just turned down," explained Motlagh. "The loan was too small, They didn't want anything to do with it."
“My grandpa actually just started it as an entrepreneurial idea, and just kind of ran with it,” stated Hurst. “He basically said, ‘I wouldn’t be here today if it wasn’t for the credit unions, because I got turned down by the banks.”
CU Community President/CEO Judy Hadsall was also interviewed. CU Community provided a recent loan for Kiddie Kart, and is nearing the 12.25% cap for credit union business lending. A bill in the U.S. Senate, S. 2231 - the Credit Union Small Business Jobs Act - would raise the limit to 27.5% of a credit union’s assets.
“Somebody needs to help these small business people get started and get on their feet and grow this economy back to where it needs to be,” stated Hadsall.
The Springfield Business Journal highlighted Motlagh’s pizza business. The article shared how he ran into difficulties getting a loan from a bank, but was helped by Assemblies of God Credit Union (AGCU). The credit union is right at the business lending cap.
“We have had to turn down multiple borrowers due to being at the regulatory limit,” explained AGCU President/CEO Paul Ebisch. “We refer them to local community banks and other credit unions.”